A solar power company has agreed to pay R14 million to the Competition Commission although it still denies that it contravened the Competition Commission Act provisions regarding minimum resale price maintenance.
The practice of resale price maintenance is a per se contravention of the Competition Act which means that companies engaged in the practice cannot justify doing it. In addition, the Commission alleged that Victron published a recommended retail price list on its website from time to time and provided updated price lists to its distributors on a quarterly basis. Although the list indicated that it is a recommended price, Victron in practice insisted on a maximum discount from its recommended retail price list when online stores sold Victron products to end customers.
However, the Commission maintained that the conduct amounts to a contravention of section 5 of the Competition Act, regardless of any justifications that may be proffered by the company involved.
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